I have a wonderful concept for business.
I am going for funding.
Above is the current common scenario we can see now. No need to think of your funding at the very initial stage as long as your business is unique in nature.
To build we need fund. But to run, the product should earn at the appropriate stage. If the product is not earning enough to have a smooth run, then I am sure the product is not “unique” or didn’t impress the market as your think.
Determine the purpose of raising money. If the purpose is to build the basic model of your product then you are making a mistake.
If you are not able to nail the absolute necessity for raising the money then you are again making the mistake.
You cannot go to market if you don’t have any uniqueness in your product. The market and the VCs would have seen much products of the same nature of yours and so it may neither impress the market to buy or the VCs to fund.
If you can afford then you should bootstrap and bring the first version of the product to the market. See the impression it is creating in the market and then draw the roadmap for expansion and go for funding.
Everything comes with a “price” and so is funding too. You have to determine the price you can afford to pay by getting the fund. Else your identity will be lost in front of your product.
Bootstrapping is considered the best depending upon the nature of the product you are going to build and the span it is going to take. If these are well within your limits then better to go bootstrapping.
If the supply is getting drained then work out the best way to go to market for funding. Don’t bring funding too early. Else it will absolutely get diluted early too.
Also, make sure that you are aware of the following when you are going to pitch to a potential VC.
* Understand the complete weakness of your product along with its uniqueness.
* Don’t bloat your projected revenue to an unrealistic number
* Understand your big competitors and compare yourself with them in all form and shape rather than hiding them or extrapolating yourself.
* Don’t approach every known VCs. This will dilute your business identity.
* As how the VCs evaluate the businesses to be funded the same way you should do a thorough evaluation of the VC firms too.
* Make sure that you are not pausing or using too many fillers during your prime pitching.
* Don’t do the routine presentation. Do it in a very innovative way. Your pitch and the presentation should impress the VCs at the very first instance. Else even if you go to them for many levels of discussion you will not succeed.
* The bio of your team should get sold first before your product gets. So bring in the right people with you. Else it will become the worst reason for your failure.